The Banking industry is very vibrant to economic growth of this country. So far there are 42 commercial banks and 86 foreign exchange bureaus contributing to the growth of the financial sector. This is according to the Institute of Economic Affairs that involves the Public in financial management.
However the recent financial sector report recommends a raise to core-capital from 1B to 5B and that the Central Bank monitors and carries out risk assessments.
Alphonce Omondi Equatorial Commercial Bank representative says that the banking sector has contributed immensely to the Countries’ economy with major contributions from the Agriculture, Manufacturing, Tourism, Energy, Transport and building and construction sectors.
The sectors have earned the economy foreign exchange despite the pitfalls experienced in the Tourism industry due to Al-Shabaab threats during last year.
“Commercial banks also play the role of surplus in balance of payment, creators and distributors through savings and fixed deposits, removal of budget deficits and optimum utilization of resources”, said Omondi.
The Institute of Economic Affairs (IEA) has proposed that the government reduces domestic borrowing and increase fiscal cash flow management so as to improve economic confidence in the 2016/2017 budget.
It has further advised control of interest rate controls to control spending and financial management.
Consequently the IEA outlined the World Health Organization recommendations on the importance of taxing on Tobacco.
Ms.Emma Wanyonyi of the Institute of Legislative Affairs says that high taxing of Tobacco will provide potential revenue generation and control tobacco use in the country to boost health.
“Taxing of tobacco will also reduce diseases caused by the use of tobacco products for instance cigarettes and the revenue collected will help develop economy “,Wanyonyi reiterated.